Digital Philippines 2011 Yahoo!-Nielsen Net Index Highlights Manila, PhilippinesNo part of this document may be quoted, reproduced, stored in a retrieval system, or transmitted in any form or by any means –electronic, mechanical, photocopying, recording, or otherwise – without the written permission of Yahoo! Southeast Asia Pte. Ltd. and The NielsenCompany (Philippines), Inc..
Yahoo!- Nielsen Net Index 2011 At Yahoo! and Nielsen, we believe that fact-based Insights should drive decision-making!• In 2009, Yahoo!-Nielsen Net Index study was launched to gather an baseline understanding of the Filipino internet user• Building on this foundation, the study was repeated in 2010 to track shifts in user behaviour and evolving preferences• In 2011, the study continues to evolve, to reflect the changing digital landscape…whilst maintaining key longitudinal measures
Research Design• Methodology Personal face-to-face interviews using two-part structured questionnaire (linked with Nielsen Media Index)• Area Coverage National Urban Philippines (22 major cities including Metro Manila)• Respondents Males and Females aged 10+ yrs old across all socio-economic classes who have used the internet in the past month• Sample Size 1,500• Sampling Approach Multi-stage Probability Sampling• Fieldwork Period Q1 2011
Internet usage has remained largely stable, though wesee some pockets of growth 2009 2010 2011Past Month Reach (%) 42 43 36 37 37 36 34 33 33 30 31 30 29 30 26 30 30 29 26 24 26 27 23 17 Total Metro Manila Luzon Visayas Cebu Mindanao Davao Mega Manila Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
Despite this stability, overall engagement is on the rise.Social networking now dominates… Select Monthly Online Activities (%) 2009 2010 2011 Visiting Social Networking sites 51* 53 82 Search 58 76 80 Instant messaging 63 68 69 Internet Portal 54 73 67 Visiting public chat rooms 54 67 65 Email 63 65 64 Played games online 53 45 54 Listen to songs in music websites - - 45 Downloaded or uploaded music files online 25 37 37 Shared/posted something online that you created 15 24 36 Activities showing significant increase at 95% confidence levels between 2009 and 2011 * Note. The 2009 figure for social networking includes community groups /forums Base: Past month Internet users aged 10+ across National Urban Philippines Source: Yahoo!-Nielsen Net Index 2010, 2011
Evident from the increased time being spent online,across mediums and locations Place of Access (Weekly Avg. Time Spent) Internet Home School Work cafes 2009 4.8 3.4 7.7 4.5 2011 10.4 5.2 11.5 5.5 Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
Internet usage highest amongst upscale under 30s…Past Month Reach (%)Total Age Gender SEC 2009 2010 2011 65 66 60 52 55 53 54 53 49 44 42 4330 31 30 31 33 29 29 29 30 25 25 26 24 19 21 13 14 11 3 4 3 Total 10-19 20-29 30-39 40-49 50 and up Male Female SEC ABC SEC C2 SEC DE Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
…fuelled by their appetite for entertainment contentContent Preferences on Internet Portals (%) Total (T3B %) 10-19 (Index) 20-29 (Index) International music 68 114 91 Local music 65 104 94 Interesting videos or photos 59 118 101 Games 56 108 94 Technology and gadgets 55 102 103 World news 49 99 103 National/ Local news 48 104 99 Entertainment news 45 116 99 Lifestyle 45 95 118 Sports 45 104 93 Movies, TV or Drama reviews/guides 42 106 97 Business news 38 90 84 City guides 35 100 101 Travel 33 95 103 Finance 30 89 76 Traffic updates 29 104 99 Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines who Have visited Internet Portals Source: Yahoo!-Nielsen net Index 2009, 2010 and 2011
The shift from shared to private access continues … 2009 2010 2011 Place of access (%) SEC ABC171 69 7 66 6 7 5 35 31 National Mega Manila 27 7 7 5 6 4 5 4 4 2 3 2 0Internet cafes Home School Work Friends house Cellphone/ PDA Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines Source: Yahoo!-Nielsen net Index 2009, 2010 and 2011
Mobile usage needs further tariff rationalisation to gaintraction Home Internet Offerings Mobile Phone Internet Offerings
Filipino Netizens impression of thechanging digital ecosystem?• Evolution of Social Networking• Online Transactions (deal aggregation/ e-commerce)
Social Networking –Cant stop this thing we started!
Not just an activity but a starting point for the online experience for many Internet Usage Pathway (%) 39 30 13 11 5 1 Social Networking Search Email Online News Instant Messenger GamesQuestion: Please think about the following online services and tell me the order in which you first ever used each.Base: Past month Internet users aged 10+ across National Urban PhilippinesSource: Yahoo!-Nielsen Net Index-2011
A dominant platform to connect and communicate… though mail/messenger remain relevant Past month online activities (%) Social Networking Email Messenger 82 68 69 63 65 64 63 51 53 2009 2010 2011 2009 2010 2011 2009 2010 2011Base: Past month Internet users aged 10+ across National Urban Philippines# Note. The 2009 figure for social networking includes community groups /forumsSource: Yahoo!-Nielsen Net Index 2010-2011
Updating profile is mainly done through PC, Mobileupdates reflect Mobile usage (low) Mode for updating Social networking profile (%) Mobile Phone Browser Through PC 3% Mobile 96% Phone SMS 4%Question: How do you usually view/ update your Social Networking sites?Base: Past month Internet users aged 10+ across National Urban Philippines who have visited social networking in Past 3 monthsSource: Yahoo!-Nielsen Net Index 2011
Social networks start with ‘close contacts/relations’… but quickly move to less familiar circles… Connections on Social Networking sites (%) Regular friends 96 Family members 59 Friends with whom you had lost contact 38 People from outside your city/country 32 Referrals from friends 15 People you met once or twice in person 11People you only know in the virtual world 3 Co-workers 3Question: Who are the people you interact with regularly on these Social Networking sites?Base: Past month Internet users aged 10+ across National Urban Philippines who have visited social networking sites in Past 3 monthsSource: Yahoo!-Nielsen Net Index 2011
…thus the effort to limit what users share with the larger/extended group on social networking sites Steps taken to manage digital profile (%) Keep Strict Privacy Settings 66 Limit My Personal Info. Available Online 57 Avoid Allowing People Access My Blog/Social Net. Site 45 Limit The Type/Number Of Photos/Video Shared 33 Remove The Tag On Photos/Video Uploaded By Others 17 Limit/Prevent Others From Posting onMy Blog/SNS 16 Avoid Allowing People Access My Blog/SNS 13 Always Check Info About Me Online 13 Deleted A Blog/Social Networking Page 4 Cancelled Another Online Account 2Question: Who are the people you interact with regularly on these Social Networking sites?Base: Past month Internet users aged 10+ across National Urban Philippines who have visited Social Networking Sites in Past 3 monthsSource: Yahoo!-Nielsen Net Index 2011
And the emergence of ‘selective socialization’ Opinions on Social Networking (%) Ive found more people like me who share my interests 74 Allows me to be more social than I am in person 72 I can really reveal parts of my life/personality, I would 69 normally not disclose I feel less awkward when I communicate on these sites 67 than in person I feel more in tune to what is going on socially 67 I really try to find just sincere people 63 Ive become choosy about whom I socialize with 59Question: Please tell me to what extent do you agree with each of the following opinions about social networking?Base: Past month Internet users aged 10+ across National Urban Philippines who have visited SNS in Past 3 monthsSource: Yahoo!-Nielsen Net Index 2011
Softening of growth of Social networking is becoming well documentedFacebook Sees Big Traffic Drops in Facebook sees a Decline in YoungUS and Canada as It Nears 700Million Users Worldwide Users softpedia, June 12th, 2011Inside Facebook, June 12th, 2011 ALONE TOGETHERSocial Networks In Decline Why We Expect More From Technology and Less From Each OtherSmart Insights, April 12th, 2011 By Sherry Turkle
So what’s next… …fragmentation across multiple platforms OR cataloging on a single platform?
Social Networking - Summary• Social networking is suited to one-to-many … mail and messenger remain relevant for personal one-to-one conversations• The rapid growth of social networks in Philippines, will result in increased awareness for the need to build “walls” within existing networks• These “walls” will be built to control information exchanges and ensure conversations remain rich and engaging (one-to-few)
E-CommerceOnline Deal Aggregation –A Mixed Bag
The backdrop to e-commerce in Philippines Presence of High reliance on IT and BankingTraditional trade counterfeits and inter-personal infrastructure legacy knock-offs relationships “evolving” Lack of‘accreditation and guarantees…by Buyers need to Buyers feel the Low levels of default modern ensure quality by comfort, dealing confidence/trust in trade actually physical inspection with known vendors transacting online encourages destination shopping There is an inherent reluctance to “trade” through the Internet
Online transacting remains in it’s infancy Online Transactions (%) SEC ABC 4 3 Mega Manila 3 1 2010 2011 Question: Have you purchased products online in the past 12 months… payment could be online or offline? Base: Past month Internet users aged 10+ across National Urban Philippines Source: Yahoo!-Nielsen Net Index 2011
Payments largely made offline, given current trust andcomfort levels with e-payment Payment methods (%) Cash (face to face) 53 Credit card 36 Transfer via ATM/Bank 10 Internet Banking 9 Deposited cash at bank branch 4 Online accounts such as Paypal 1 Cheque 1 Debit card 1
Group buying sites like Groupon have createdsignificant buzz recently…Hailed by Forbes as the "fastest- Over the past three years, an entirelygrowing company in new industry known as group-buyinghistory", Groupon turned over has suddenly emerged, and is growingUS$760 million last year, and expects at a phenomenal rate.that to hit the billions this year. nzherald.comForbes
Group Buying: Description These sites negotiate discounts on populargoods, services and cultural events, which is offeredto thousands of subscribers in a free daily email. Thedeals are activated only when a minimum number of people agree to buy.
Current levels of comprehension limit overall interest … Interest is high among those who understand EASE OF COMPREHENSION LEVEL OF INTEREST Extremely interested 5% Neither Not at all 15% Understand interested 32% 25% Quite Slightly Not at all interested interested understand 43% 9% 53% Somewhat interested 18%Question 1: After hearing the explanation of Deal Aggregation concept, to what extent do you understand it?Question 2: After having a look at the explanation of Deal Aggregation concept, how interested are you in this overall concept?Base: Past month Internet users aged 10+ across National Urban PhilippinesSource: Yahoo!-Nielsen Net Index-2011
Deal Aggregation - Summary• Pure-play ecommerce offerings are still in nascent stage, given the constraints around product authenticity and infrastructure• Online buyers and sellers currently find each other online, but typically “transact offline”• For deal aggregation sites to be successful, a mind-shift needs to occur… there is a need to educate on the concept of deal aggregation, against a backdrop of reluctance to “pay” online
Key Takeaways1. Internet growth driven by the young and upscale audience2. Home internet access continues to grow, with engagement levels increasing with growth in private access3. Philippines enormous appetite for social networking could accelerate the emergence of “selective socialisation”4. Deal aggregation holds significant potential, but comfort in e- payment platforms and trust levels will dictate the rate of growth!